L04 Supply and Demand part 2

Multiple Choice

When "everyone realizes that sardines are super gross", what happens in the market for sardines?

• Demand shifts to the left

• Demand shifts to the right

• Supply shifts to the left

• Supply shifts to the right

Multiple Choice

Assume you like Pepsi and your income increases

• Your demand for Pepsi increases

• Your demand for Pepsi decreases

• Your quantity demanded of Pepsi increases, but your demand curve is unchanged.

• Your quantity demand for Pepsi decreases, but your demand curve is unchanged.

Multiple Choice

Assume the price of Pepsi decreases

• The demand for Pepsi decreases

• The demand for Pepsi decreases

• The quantity demanded of Pepsi increases

• The quantity demanded of Pepsi decreases

Multiple Choice

Assume the price of Coke decreases

• The demand for Pepsi increases

• The demand for Pepsi decreases

• The quantity demanded of Pepsi increases

• The quantity demanded of Pepsi decreases

Multiple Choice

Suppose the price of good X increases. In terms of demand, what is the result?

• The demand for X increases

• The demand for X decreases

• The quantity demanded of X increases

• The quantity demanded of X decreases

Multiple Choice

Suppose goods X and Y are substitutes for each other. If the price of good Y increases, what is the result in the market for good X?

• The demand for X increases

• The demand for X decreases

• The quantity demanded of X increases

• The quantity demanded of X decreases

Multiple Choice

Assume the price of cheese decreases. What will happen in the pizza market?

• The supply of pizza increases

• The supply of pizza decreases

• The quantity supplied of pizza increases

• The quantity supplied of pizza decreases

Multiple Choice

Which of the following will cause the supply curve for oranges to shift to the left?

• The government begins subsidizing orange growers

• A study is released showing oranges improve eyesight

• An ice storm strikes Florida (damaging areas where oranges are grown)

• A new orange juice commercial airs on TV

Multiple Choice

Suppose there is a shortage in the market for avocados. Assuming a competitive and unrestrained market, what happens over time?

• The price of avocados will fall, and the shortage will worsen.

• The price of avocados will rise, and the market will eventually reach equilibrium.

• The price of avocados will rise, and a large surplus will be created.

• Producers will stop growing avocados.

Multiple Choice

Consider the market for bananas. Suppose that both the supply of and demand for bananas increases simultaneously. Which of these effects is certain?

• The equilibrium price of bananas will increase

• The equilibrium price of bananas will decrease

• The equilibrium quantity of bananas will increase

• The equilibrium quantity of bananas will decrease.